you're a king mate. plain and simple. you have no idea how much this has helped me. was honestly having a melt down with my dissertation. subbed and liked. i'll forever support you. thank you so much
Hey Nata, correct me if I'm wrong. In my opinion, instead of using the return of each stock, excess return is the appropriate input, which derived by stock return minus risk-free rate.
helpful vid man. im just getting exposed to regression analysis in my MS Finance class right now.....was never taught it in undergrad many yrs ago. Very helpful Nate.
Thanks, This is exactly what I've been looking for. Absolutely great video. Direct answer to my question and time saving. what a good one . Highly Appreciated
Hey, I am so grateful I managed to calculate my beta. Thank you the tutorial was very clear to understand and your explanation is very organized. Bless you.
awesome video! I had no idea how to begin this type of assignment. You explained everything very clearly and I got a better understanding of the two ways to find beta. thanks!
Thank you for the detailed explanation, can you also share how to find the betas for multiple regression, or what are those more than 1 betas (b1,b2,b3,b4......) how those other betas are calculated.?
Thanks man, helped me with the Linear Regression :) Though I am handling an excel with roughly 50 sheets so I use COVARIANCE.P(stock;index)/VAR.P(index) to count my betas. It should be all the same I guess.
Hi! you only considered stock, what if in my portfolio I chose some stocks, commodities, bonds ; Should I find beta for all of them? If yes then how should I find overall one final beta? Thanks for your answer in advance
Hi Nate, I like the way you explain, and I would like to see if you can give me some advice, I am 15 years old and I want to study finance, what can you recommend me personally?
The slope i.e. beta won't change even if you subtract the risk free return from both Apple and S&P's return(Assuming the risk free rate hasn't changed over the period). As long as all X's are changed by the same amount in the same direction, and/or all the Y's are changed by the same amount in the same direction, the slope of the line does not change. Hence the beta would be the same.
Isn't beta actually the standardized coefficient that you can compare as a effect size across different models? It seems to me that what you print out is b (the unstandardized) coefficient? Can you help me understand this?
what do you do if you find the Beta but know that it's wrong? I followed your method and understand why it should work. But for some reason i'm getting a low beta of .45 for my stock compared to the stock market. The issue is when i plot the data i can visibly see my stock has performed better than the market so my beta should be over 1. but it's not coming to it. What should i do to correct this?
I wanted to know if it was possible in excel to calculate the betas for many companies together instead of doing the single procedure for each single stock?
I can't download the S&P 500 dataset on Yahoo Finance. Somehow the download button just doesn't show up, do you know why? It works for the other firms, just not the S&P 500.
Hello, thanks for the explanation of beta. Can you explane how to calculate this formula: ERi=Rf+βi(ERm−Rf) where: ERi = expected return of investment Rf = risk-free rate βi = beta of the investment (ERm−Rf) = market risk premium with simple steps for simple peoples like me Thanks, Ivo
you're a king mate. plain and simple. you have no idea how much this has helped me. was honestly having a melt down with my dissertation. subbed and liked. i'll forever support you. thank you so much
You have no idea how helpful this was when I was ready to cry trying to calculate the beta regression for my WACC analysis! Thank you! Thank you!
Hey Nata, correct me if I'm wrong. In my opinion, instead of using the return of each stock, excess return is the appropriate input, which derived by stock return minus risk-free rate.
GOD BLESS YOU, THANK YOU I NEEDED THIS FOR MY HW
Good luck
Nate, you are so darn smart I could hug right now. The real MVP
Thanks!
helpful vid man. im just getting exposed to regression analysis in my MS Finance class right now.....was never taught it in undergrad many yrs ago. Very helpful Nate.
This video is saving my whole life right now!! PERFECT! Breaks it down in a common language, step by step!! PERFECT! Thank you so much!
Thanks, This is exactly what I've been looking for. Absolutely great video. Direct answer to my question and time saving. what a good one . Highly Appreciated
I was just casually watching this vid learning stuff and this video was made by Nate ? what ? u made these kind of video back then ? lol amazing
Whenever I take a break from using excel, I always come back to this video for a quick and concise refresher. Thank you!
Holy crap I learned all this in college and I’m so excited to use it as a new tool for investing
Hey, I am so grateful I managed to calculate my beta. Thank you the tutorial was very clear to understand and your explanation is very organized. Bless you.
4year later your video saved my day. Thanks.
me too bro
Thanks a ton. This is the simplest explanation I found on youtube
This is so helpful. Thank you!
Concise and genuine help. Big thank you. You will be blessed..!
Super simplified, easy to understand and follow. Great video!
Let me know if you have any future video requests!
CAPITAL SOLUTIONS this is jonathan man what's up!!!
do a video on how and where to buy dividend stocks of a company
CAPITAL SOLUTIONS use ad block lol
Excellent Briefing. Worth watching the video. Grateful for understanding the calculation of R square and Regression
awesome video! I had no idea how to begin this type of assignment. You explained everything very clearly and I got a better understanding of the two ways to find beta. thanks!
thank you, u made my life easier
May I ask can I use multiple stocks for estimating the Beta?
Actually, your explanation is good.
can you explain the beta chart & explain how good the portfolio is
You just saved me . Thank you soo much
Thank you very much. Good explanation.
this video really helped me in my exam thank you sir
Thanks for the quick and clear explanation! Really helpful.
Legend Mate. Thank you.
Thank you so much. It was very simple and clear. I learnt it. Thank you again.
oh very interesting thank you Nate help a lot & I always like your simplicity.
Thank you so much for this amazing video! So concise and informative.
Thank you very very much !!!!! This video was of a great help
This video is really helpful!
Very helpful!!! Thanks for share it!!
Thanks! Very clear instruction!
Thank you for the detailed explanation, can you also share how to find the betas for multiple regression, or what are those more than 1 betas (b1,b2,b3,b4......) how those other betas are calculated.?
Very clear explanation, thanks a lot
Why can't you just use cov(Rp, Rm) /Var(Rm)
also possible but takes more time, your formula is basically the same for calculation ß1 in a Regression Analysis
slope is fasted way, then cov/var then regression
Thanks man, helped me with the Linear Regression :)
Though I am handling an excel with roughly 50 sheets so I use COVARIANCE.P(stock;index)/VAR.P(index) to count my betas. It should be all the same I guess.
@@neilcarvalho8349 too busy making Excels mans hahaha
Thanks man ☺️ you made my life easy
Dude u r awesome! I found the p value with this way. Greetings from Chile!
Super helpful & a life saver bro. Many thanks!
Thanks so much! Very easy to understand.
Hi! you only considered stock, what if in my portfolio I chose some stocks, commodities, bonds ; Should I find beta for all of them? If yes then how should I find overall one final beta? Thanks for your answer in advance
How can I download the historical data for the S&P 500 ? It does not give me the download option.
Hi Nate, I like the way you explain, and I would like to see if you can give me some advice, I am 15 years old and I want to study finance, what can you recommend me personally?
Thank you! Very helpful, you have excellent teaching skills.
thanks bro, but can you provide the next step to calculate the CAPM model using these data?
excellent teaching!
Thank you for making this
thanks you for your simple explanation mate. It's easy to understand 👌
Fast and easy! Thank man.
Thanks for sharing.
Big thanks, been a life saver tutorial for my Master's dissertation!!
It makes me so happy to hear that someone has benefited from my video! Thank you for watching and good luck!
Can you explain what beta actually is and can this be graphed throughout the duration
You are a hero.Thanks a million
Hey Nate may I ask why you didn't subtract the risk-free rate from the return? Thanks for the video!
The slope i.e. beta won't change even if you subtract the risk free return from both Apple and S&P's return(Assuming the risk free rate hasn't changed over the period). As long as all X's are changed by the same amount in the same direction, and/or all the Y's are changed by the same amount in the same direction, the slope of the line does not change. Hence the beta would be the same.
Excellent, Excellent Video!!! You save my life!!! :P
u have saved me from a ton of trouble...I Love u bro
Hey Nate! I really liked watching this very informative video!
can i use this in finding arbitrage opportunity ? or tell me something worthful which i can apply for arbitrage
New to this. Quality of video is quite good :)
You can also use "LINEST" to calculate Beta. And also, shouldn't you be using logarithmic rates of return?
Great explaination! Can I do the same with S&P500 sectors, instead of a single company?
Pls tell me why u don't include dividend into Apple's return? Thanks a lot, kina urgent for my assignment😭
Hi, Thank you for the video! it helped me a lot. I just want to ask how can we add the adjusted betas ?
YOU SAVED MY ASS ! - thank you so much
This saved my life! thank you
Thanks for checking out the video Liz, glad you found it helpful!
Thanks bro. This was super helpful. You made it relatable and simple to follow!
Sub’ed
why can't i find historical data at S&P Futures???? help me
Do you do S and P for each firm? so I have to do Ford, Dell and Kroger
Isn't beta actually the standardized coefficient that you can compare as a effect size across different models? It seems to me that what you print out is b (the unstandardized) coefficient? Can you help me understand this?
Can I calculate regression for multiple shares, I calculated beta using slope function but can’t find standard error
is this levered or unlevered beta? thank you
You saved my life, thank you so much!!!
Does this method calculate levered or unlevered beta?
Thank you so much for this. I sooooooooo appreciate it!!!
what do you do if you find the Beta but know that it's wrong? I followed your method and understand why it should work. But for some reason i'm getting a low beta of .45 for my stock compared to the stock market. The issue is when i plot the data i can visibly see my stock has performed better than the market so my beta should be over 1. but it's not coming to it. What should i do to correct this?
My savior! thanks man
I wanted to know if it was possible in excel to calculate the betas for many companies together instead of doing the single procedure for each single stock?
I got different answers for beta when using slope as well as when using var and covar
I can't download the S&P 500 dataset on Yahoo Finance. Somehow the download button just doesn't show up, do you know why? It works for the other firms, just not the S&P 500.
Thanks Nate!
This is great!!!Thank you
This video saved my life thank you
Glad it helped!!!! Makes me happy!
Great video👍, but you made a little mistake there. Return = (Price Today/Price Yesterday) -1 (With no Coupons or the like).
Thank you thank you, helped me so much!!
really helpful!!
Shouldn't we use LN function while calculating returns?
Beautiful, thank you kind sir.
Legend bro
Thanks bro
you are a legend. thank you
What book references to guide you by using this excel? Because i need it to prove it to my lecturer with my research homework
Thank you so much by the way!! 👏
Can you explain the table created by regression.
Hello, thanks for the explanation of beta.
Can you explane how to calculate this formula:
ERi=Rf+βi(ERm−Rf)
where:
ERi = expected return of investment
Rf = risk-free rate
βi = beta of the investment
(ERm−Rf) = market risk premium
with simple steps for simple peoples like me
Thanks,
Ivo
Is this beta levered or unlevered?
Awesome !! Thanks. I just had to do some data cleaning before regressing them as missing values were detected by Linest()
Cool video